Tapestry Announces Increased Share Repurchases; Lifts Full Year Guidance

(RTTNews) - Tapestry, Inc. (TPR) said, given second quarter performance, robust balance sheet, significant free cash flow generation, and outlook for growth, the company now expects to return over $1.5 billion to shareholders in fiscal 2022, an increase from the prior outlook of $1.25 billion. Tapestry now forecasts the repurchase of $1.25 billion in common stock in the fiscal year, an increase from the prior outlook of $1 billion. The company continues to expect an annual dividend rate of $1.00 per share, or approximately $270 million returned to shareholders in the fiscal year.

The company said it delivered record sales for the holiday quarter, highlighted by an inflection at Kate Spade, ongoing momentum at Coach, and a return to pre-pandemic revenue levels at Stuart Weitzman. Based on these results, the company increased its revenue, operating income, and EPS guidance for the fiscal year.

For fiscal 2022, the company now sees earnings per share of $3.60 to $3.65, ahead of the prior guidance for $3.45 to $3.50. Revenue is projected to be approximately $6.75 billion, an increase from the prior outlook of $6.6 billion.

Second quarter non-GAAP basis net income per share was $1.33 compared to $1.15, last year. Net income was $318 million on a reported basis, with earnings per share of $1.15, compared to $311 million and earnings per share of $1.11.

Net sales were $2.14 billion compared to $1.69 billion in the prior year, representing a 27% increase.